On a continent where access to financial services remains limited for a large share of the population, blockchain is emerging as a disruptive technology capable of reshaping the economy. More than a purely technical tool, it represents an opportunity for wealth redistribution and broader economic participation. But what challenges and opportunities does it present for financial inclusion in Africa?
Nearly 57% of adults in sub-Saharan Africa remain excluded from traditional banking systems, according to World Bank data. This lack of inclusion restricts their ability to save, invest or access credit services. Blockchain partially lifts these barriers. Through solutions such as digital wallets and crypto-assets, individuals can participate in financial ecosystems without relying on conventional banking institutions.
One striking example is blockchain-based cross-border transfer platforms, which reduce transaction costs and eliminate intermediaries. In a continent where remittances account for a significant share of household income, these tools offer much-needed economic relief. Millions of Africans living abroad use such services to send money to their families, avoiding the excessive fees charged by traditional providers.
Blockchain stands out for its transparency and immutability. Every transaction is recorded on a distributed ledger accessible to all users. This reduces the risk of fraud and ensures enhanced traceability—critical elements for building trust in economies often marked by opacity.
New horizons for SMEs
In Africa, these characteristics translate into tangible applications. For instance, the tokenisation of land assets enables the issuance of digital property titles, reducing land-related disputes. This process also gives small landowners access to credit instruments backed by their assets. Similarly, in the healthcare sector, blockchain can be used to manage medical records securely and transparently.
Read also | Cryptocurrency regulation in Morocco: an opportunity to energise the market
Small and medium-sized enterprises (SMEs), the backbone of African economies, also stand to benefit from blockchain-based opportunities. By facilitating access to alternative financing mechanisms such as initial coin offerings (ICOs) or crowdfunding platforms, the technology reduces SMEs’ dependence on banks.
Blockchain also enables better supply-chain management, ensuring product traceability and strengthening consumer trust. For agricultural SMEs, this can translate into greater product value on international markets. Industrial SMEs, meanwhile, can use blockchain to optimise logistics processes and gain access to new markets.
With mobile access covering more than 80% of Africa’s population, blockchain is particularly well suited to reaching a broad audience. Initiatives such as Ubuntu, which tokenises assets like gold, allow millions of Africans to save or invest starting from very small amounts. This accessibility promotes economic participation among rural populations often excluded from traditional financial systems.
Challenges to overcome
In parallel, ongoing central bank digital currency (CBDC) projects in several African countries are paving the way for wider adoption of blockchain technologies. These currencies could not only reduce the cost of economic transactions but also bring previously overlooked segments of the population into the financial system. Nigeria’s eNaira, for example, illustrates a country’s efforts to digitise its economy and offer innovative financial services.
Despite its promise, blockchain adoption in Africa faces several obstacles. Financial literacy remains a major challenge to achieving widespread uptake. Many Africans have only a limited understanding of crypto-assets and their applications. Awareness campaigns and targeted training programmes are essential to democratising the technology.
In addition, technological and regulatory infrastructures still need to be strengthened. The establishment of appropriate legal frameworks and the fight against fraudulent uses of blockchain are prerequisites for its development. Governments must also invest in digital infrastructure to ensure equitable access to blockchain-related services.
Towards a more inclusive economy
Blockchain offers a unique opportunity to transform African economies and promote large-scale financial inclusion. For this potential to be fully realised, however, close collaboration between governments, institutions and private-sector actors is essential.
Africa stands at a crossroads where it can capitalise on this technology to build a more transparent and accessible economy. By relying on public–private partnerships and fostering an innovative ecosystem, the continent could become a global leader in blockchain adoption. The future of financial inclusion in Africa may well be shaped by this technology. A more transparent, accessible and participatory economy is within reach—provided the remaining challenges are addressed.
With coordinated efforts and a clear vision, blockchain could become a key catalyst for deep and lasting socio-economic change in Africa. Investment in education, infrastructure and regulation will be critical to unlocking this potential. The outlook for financial inclusion on the continent is promising, and blockchain could well be its primary engine.
The role of public-private partnerships
To ensure successful blockchain adoption in Africa, strengthening public–private partnerships is essential. Such collaborations can accelerate the implementation of innovative projects and create an environment conducive to blockchain uptake. Co-creation initiatives involving governments, technology firms and financial institutions, for example, can facilitate the integration of blockchain into public services such as digital identification, land management and healthcare systems.
Public–private partnerships can also help mobilise the funding required to develop technological infrastructure and establish appropriate regulatory frameworks. By working together, the public and private sectors can share risks and maximise the opportunities offered by blockchain.
Education and awareness
Education plays a crucial role in blockchain adoption. To overcome challenges linked to limited awareness and mistrust of new technologies, education and outreach initiatives must be rolled out. Governments and non-governmental organisations (NGOs) can organise workshops, seminars and awareness campaigns to explain the benefits of blockchain and demystify related concepts.
Educational institutions can also incorporate blockchain courses into their curricula, helping to train a new generation of professionals skilled in the technology. By investing in education, Africa can ensure its citizens are well informed and able to use blockchain effectively and securely.
Opportunities for sustainable development
Blockchain can also play a significant role in sustainable development across Africa. It can be used, for example, to track agricultural value chains, ensuring that sustainable practices are respected and rewarded. Farmers can leverage blockchain’s transparency to demonstrate that their products are organic and fair-trade, opening up new markets and increasing incomes.
In the energy sector, blockchain can facilitate the management of decentralised power grids and encourage the adoption of renewable energy. Microgrid projects that use blockchain to track energy production and consumption can improve access to electricity in rural areas and reduce dependence on non-renewable sources.
The future of blockchain in Africa
The future of blockchain in Africa is full of promise. With coordinated action and strong political will, the technology can transform the continent’s economic landscape. Governments must act as enablers by creating supportive regulatory environments and investing in the necessary infrastructure.
Businesses, for their part, must seize the opportunities offered by blockchain to innovate and expand. By adopting the technology, they can enhance their competitiveness and contribute to regional economic growth.
Ultimately, blockchain should not be viewed merely as a technology, but as a tool for transformation and inclusion. Governments, businesses and citizens alike must mobilise to integrate it responsibly and effectively, paving the way for a new era of prosperity and equity in Africa.
